Chapter Five: Business Registration In Tanzania

CHAPTER FIVE: BUSINESS REGISTRATION IN TANZANIA

THE CONCEPT OF BUSINESS REGISTRATION

Business registration is the process of obtaining legal authorisation to establish and operate a business within a given locality. It is also commonly referred to as business formalisation.

Join WhatsApp Group

The process encompasses the registration of the business itself, its products, properties, documents, intellectual property, and various other elements.

Business registration is not limited to the initial establishment of a business; it also governs day-to-day business operations.

Evidence of business registration is typically presented in the form of business licences, permits, and certificates.

IMPORTANCE OF BUSINESS REGISTRATION

The following are the key benefits of business registration in Tanzania:

1. Enhances Freedom to Conduct Business

The Government of Tanzania requires all business owners operating within the country to hold a valid business licence issued by the respective authority.

Therefore, for any entity to operate freely — whether on the Tanzania Mainland or in Zanzibar — registration is essential in order to avoid the legal consequences associated with operating an unregistered business.

2. Increases Access to Credit

Many financial institutions in the country extend loan facilities to businesses that have formalised their operations.

Businesses that have undergone the formalisation process are well-positioned to secure funding from financial institutions, government bodies, or other formal lenders to expand their operations, thereby contributing to broader economic development.

3. Increases Market Access

A registered business commands a higher level of trust among its customers, channel members, and the general public. Registration signals to third parties that the relevant authorities have endorsed the business’s activities and that it is safe to transact with.

This trust enables registered businesses to penetrate diverse markets. Furthermore, it allows medium-sized businesses to bid for tenders in both the private and public sectors.

4. Enables Protection of Intellectual Property Rights

The registration of intellectual property (IP) enables companies to safeguard their core business activities, as well as their research and development efforts. Beyond protection, IP registration also helps companies build and enhance their overall value, as intellectual property is typically recognised as an asset during company valuations. Consequently, intellectual property assets may even be used as collateral when securing loans.

5. Improves Tax Administration

The exchange of information between the Business Registrations and Licensing Agency (BRELA) or the

Business and Property Registration Agency (BPRA) and the Tanzania Revenue Authority (TRA) or the Zanzibar Revenue Authority (ZRA) ensures that all registered and operating businesses fulfil their tax obligations.

Through business formalisation, the burden on tax administration is significantly reduced, as fewer resources are required to identify and pursue businesses operating informally.

6. Increases the Tax Base

A greater number of registered businesses broadens the scope for tax collection across a wider range of entities.

Every business registered with BRELA, BPRA, or any other relevant authority correspondingly increases the number of registered taxpayers with the TRA or ZRA.

As more businesses formalise their operations, the tax base expands, resulting in increased revenue collection by the relevant tax authorities.

7. Assists in the Acquisition of Property Rights

Business formalisation enables a business to acquire property in its own registered name. A registered business may, therefore, invest in substantial assets such as land or other properties — an opportunity that may be unavailable or restricted for unregistered businesses.

8. Supports the Planning Process

Business formalisation benefits both the government and the private sector during the planning process.

With a formalised business environment, the government is better able to estimate revenue projections, the cost of collection, and the appropriate allocation of social services, infrastructure, and levies.

Similarly, business owners are better positioned to forecast their annual tax liabilities and plan for timely payment.

TYPES OF BUSINESS LICENCES

Business registration for medium-sized enterprises and other forms of business in Tanzania is a multifaceted process, as illustrated in Figure 5.1.

The nature of registration depends on several factors, including the form of the business (size, organisational structure, and products), the type of sector, locality (Tanzania Mainland versus Zanzibar), ownership (local versus foreign), location (rural versus urban), and various other considerations.

Based on the Tanzania Small and Medium Enterprise (SME) Development Policy of 2003, the criteria used to determine the category of a business — including medium-sized enterprises — at the point of registration are the amount of capital invested and the number of employees.

GENERAL LICENCES

General licences refer to the broad permits, licences, or certificates issued to business enterprises by Local Government Authorities (LGAs), BRELA, or BPRA, or their respective agencies. These are typically required to be obtained after a business has applied for the relevant sectoral business licences. Examples of general licences include the following:

BUSINESS LICENCE

A business licence is ordinarily issued upon the registration of a business. It constitutes the authorisation granted by the licensing authorities to establish and operate a business. In Tanzania Mainland, business licences are classified into two categories: Class A and Class B.

Class A licences are issued by the Ministry of Industry and Trade (MIT) through the Business Registrations and Licensing Agency (BRELA), while

Class B licences are issued by Local Government Authorities (LGAs). Examples of business licences issued by BRELA are presented in Table 5.1.

Table 5.1: Business Licences Issued By Brela

Category	Category	Category
Estate Agent, Estate Developer, Property Management, Real Estate Agent	Cargo Valuation, Cargo Superintendence, and Pre- Shipment Inspection	Dealers in Explosives
Shipping Agency	Cargo Tallying	Social Security Provider
Shipping Business	Harbours and Cargo Handling	Export and Selling
Commercial Traveller	Electricity Production and Distribution	Water Drilling and Supply
Clearing and Forwarding / Freight Forwarders	Bureau de Change	Dealers in Broadcasting Apparatus
Insurance and Assurance, Insurance Broker, Re-insurance	Stevedoring or Lighterage	Manufacturing and Selling
Tourist Hotels, Lodges, Camps, Tour Operations, Hunting Safaris, Travel Agents, Car Hire or Rental, Tourist Photography and Promotion	Courier Services and Mail Agents	Motor Vehicle Dealers
Banking and Financial Institutions; Capital Market and Credit Card Management; Stock Exchange and Stockbrokers	Broadcasting and Television	Commission Agent or Manufacturer’s Representative
Transportation of Passengers and Goods by Air	Ship Chandlers / Miscellaneous Port Services	Import and Selling
Postal Services	Refining of Crude Oil	—
Transportation of Passengers and Download & Install Darasa Huru App DOWNLOAD Goods by Railway	Night Clubs	Any Business of a National or International Nature or Governed by Policy
Category	Category	Category
Fax, Telex, Email, Internet Service Providers, Internet Cafés, Internet Surfing, Telecommunication Services, and Sale of Telecommunications Equipment	Dealers in Arms and Ammunition	Banking Brokers
Air Ticketing Institutions	Banking Agents	Capital Market
Microfinance Institutions	Micro Credits	Credit Card Management
Mortgage and Hire Purchase	Credit Reference Bureau	Social Security Agent
Stockbrokers	Sale of Telecommunications Equipment	—
Mining and Gas Drilling	Mineral and Gas Survey / Prospecting	Gambling
Casino	Betting and Slot Machines	—

In Zanzibar, BPRA is the authority responsible for registering companies, firms (both partnerships and sole proprietorships), civil society organisations, cooperative societies, and public corporations.

For the purposes of issuing business licences, BPRA has classified all businesses into 21 sectors (A to U), as shown in Table 5.2.

These sectors are further subdivided into various sub-sectors, business activity groups, and business activity classes.

Table 5.2: Sectors in Which Business Licences Are Grouped in Zanzibar

Code	Sector	Code	Sector
A	Agriculture, Forestry, and Fishing	L	Real Estate Activities
B	Mining and Quarrying	M	Professional, Scientific, and Technical Activities
C	Manufacturing	N	Administrative and Support Service Activities
Code	Sector	Code	Sector
D	Electricity, Gas, Steam, and Air Conditioning Supply	O	Public Administration and Defence; Compulsory Social Security
E	Water Supply; Sewage and Waste Management	P	Education
F	Construction	Q	Human Health and Social Work Activities
G	Wholesale and Retail Trade; Repair of Motor Vehicles and Motorcycles	R	Arts, Entertainment, and Recreation
H	Transportation and Storage	S	Other Service Activities
I	Accommodation and Food Service Activities	T	Activities of Households as Employers; Undifferentiated Goods and ServiceProducing Activities of Households for Own Use
J	Information and Communication	U	Activities of Extraterritorial Organisations and Bodies
K	Financial and Insurance Activities

In addition, business licences issued by Local Government Authorities (LGAs) in Tanzania Mainland are listed in Table 5.3, while Figure 5.3 presents a sample business licence issued by LGAs in Tanzania Mainland.

Table 5.3: Business Licences Issued by LGAs in Tanzania Mainland

Category	Category	Category
Insurance Agent	Cooperative Societies	Broker
Restaurants, Ordinary Hotels, and Guest Houses	Wholesale Trade	Transportation of Passengers within the City, Municipality, and Township
Auctioneer	Building, Electrical, Mechanical, and Civil Works Contractors	Small-Scale Manufacturing and Download & Install Darasa Huru App DOWNLOAD Selling
Itinerant Trade	Specified Professionals	Attended Telephone Services
General Merchandising (Supermarkets, Departmental Stores)	Printing and Publishing of Books and Newspapers	Waste Management
Regional Trading Companies	Spare Parts and Machine Tools	Entertainment Halls
Commercial Farming / Animal and Fishery Husbandry	Sale of Agricultural Products within the Country	Beauty Salons and Spas
Bars and Pubs	Bookshops and Stationeries	Handicrafts and Works of Art
Gyms	Barbershops	Public Toilets and Bathrooms
Cosmetics	Car Parks	Any Other Business Not of a National or International Nature, or Not Governed by Policy
Private Schools	Day Care Centres	—
Organised Exhibitions, Concerts, and Events	Installation and Maintenance Services	—

COMPANY REGISTRATION CERTIFICATE (CERTIFICATE OF INCORPORATION)

Companies must be registered under the Companies Act — 2002 for Tanzania Mainland and 2013 for Zanzibar. BRELA handles registration in Tanzania Mainland; BPRA handles it in Zanzibar.

1. Business Name Registration Certificate

Issued to individuals, partnerships, or corporations registering a trading name. BRELA covers Tanzania Mainland; BPRA covers Zanzibar.

2. Certificate of Compliance

Required for foreign companies wishing to operate in Tanzania. Issued by BRELA (Mainland) and BPRA (Zanzibar).

3. Taxpayer Identification Number (TIN) Certificate

A unique tax ID for individuals or businesses. In Tanzania Mainland, TIN is issued by TRA after company registration. In Zanzibar, a separate TIN application is submitted to ZRA after incorporation.

4. VAT Registration Number (VRN) Certificate

Issued by TRA (Mainland) and ZRA (Zanzibar). Required for professional service providers and businesses with annual turnover above TShs. 200 million (Mainland) or TShs. 100 million (Zanzibar).

5. Tax Clearance Certificate

Issued by TRA (Mainland) or ZRA (Zanzibar) confirming full tax compliance for a given period.

6. Incentive Certificate

Grants investment incentives. Issued by TIC in Tanzania Mainland and ZIPA in Zanzibar. Both operate one-stop centres for acquiring licenses.

7. Occupational Safety and Health Certificate

Ensures workplace safety. Issued by OSHA in Tanzania Mainland and the OSH Department in Zanzibar.

8. Fire Safety Certificate

Issued by the Fire and Rescue Services Department (Ministry of Home Affairs) to businesses meeting fire safety standards. Applies to both Tanzania Mainland and Zanzibar.

9. Pension Funds Registration

Employers must register employees with pension funds. In Tanzania Mainland: NSSF (private sector) and PSSSF (public sector). In Zanzibar: ZSSF covers both sectors.

10. Work Permit

Issued to non-citizens by the Labour Commissioner (Mainland) or Labour Commissioner of Zanzibar. Five categories exist:

Class A – Investors/self-employed
Class B – Prescribed professions (medical, oil & gas, science teachers)
Class C – Other professions
Class D – Religious/charitable activities
Class E – Refugees

11. Residence Permit

Issued by the Commissioner General of Immigration Services for both Mainland and Zanzibar. Three classes:

Class A – Trade, business, agriculture, manufacturing, etc.
Class B – Foreign employees with a valid work permit
Class C – Students, researchers, volunteers, medical patients, etc.

INTELLECTUAL PROPERTY RIGHTS

Type	Tanzania Mainland	Zanzibar
Copyright	COSOTA	COSOZA
Patents	BRELA or ARIPO	BPRA or ARIPO
Trademarks	BRELA	BPRA
Industrial Designs	ARIPO	ARIPO

SECTORAL LICENSES

Sector-specific licenses issued by relevant ministries or agencies, often required before obtaining a general business license. Key examples include:

Tourist Agency License (TAL) – Ministry of Natural Resources and Tourism

Insurance License – TIRA

Banking License – Bank of Tanzania (BOT)

Capital/Stock Exchange License – CMSA

Telecom & Broadcasting License – TCRA

Mining License – Ministry of Minerals

Explosives Dealers License – Ministry of Minerals

Customs Agency License (CAL) – TRA

Medicine & Medical Devices Permit – TMDA

Industrial License – BRELA

Shipping License – TASAC

Land Transport License – LATRA

Airworthiness Certificate – TCAA

Merchant License – TPA

Electricity License – EWURA

Petroleum Dealers License – EWURA

Water Dealers License – EWURA

Water Drilling Permit – Ministry of Water

Gaming License – Gaming Board of Tanzania

Ammunition Dealers License – TPDF

Crop Board Permits – Respective Crop Boards

Export Permits – Ministry of Agriculture

Professional Certificates – Respective professional boards (e.g., NBAA, CRB, ERB)

BUSINESS REGISTRATION PROCEDURES

Procedures vary by license type and location. General processes for business licenses, name registration, company registration, and TIN acquisition are similar in both Mainland and Zanzibar. Sectoral license procedures vary by sector. Most applications are done online through LGAs, BRELA, BPRA, TRA, or ZRA.

A: Business Name Registration

Steps to register a business name:

1. Create an account (ORS)

Register on the BRELA or BPRA website and select “Registration of Business Names” from the services menu. Options include registering, updating, or managing a business name.

2. Name clearance

Search existing registered names online to ensure yours is unique. This can be done without an account.

3. Fill in the application form

Provide:

Applicant details (ID, passport for foreigners, address)
Business name and activities
Principal place of business in Tanzania
Ownership details (for partnerships/corporations)

4. Upload attachments

Submit required documents.

5. Payment

A control number is generated after uploading documents. Pay the registration and annual maintenance fees.

6. Submit application

Submit after payment confirmation.

7. Decision

If corrections are needed, feedback is provided. If approved, you receive a certificate and business extract.

COMPANY REGISTRATION

Steps to register a company:

1. Create an account (ORS)

Register on BRELA or BPRA and select “Registration of Companies.” Options include registering, reserving a name, or filing returns.

2. Select company type

Choose from foreign company, private limited by guarantee or shares, public limited by shares, or unlimited private company.

3. Fill in the application form

Provide details such as company information, registered office, business activities, directors, secretary, share capital, and shareholders.

4. Upload attachments

Include directors’/shareholders’ details and certified memorandum and articles of association.

5. Payment

A control number is generated after uploading documents.

6. Submit application

Submit after payment confirmation.

7. Decision

Feedback is given if corrections are needed. If approved, a certificate of incorporation is issued.

BUSINESS LICENSE FROM LGAS (TANZANIA MAINLAND)

LGAs issue Class “B” licenses for businesses operating within a specific local area.

Steps:

1. Open an account

Use a national ID and TIN. LGAs assign a representative role upon account creation.

2. Select license type

Choose the appropriate business license.

3. Fill in the application form: Provide business details and contact information.

4. Upload attachments

Basic documents include title deed/lease agreement, birth certificate/passport, and certificate of incorporation.

5. Decision

If rejected, corrections must be made and resubmitted. If approved, a control number for payment is issued.

6. Payment

Amount depends on the business type.

7. Receive license

License is issued after payment.

8. Renewal/Transfer/Termination

Options available for annual or temporary licenses.

BUSINESS LICENSE FROM BRELA OR BPRA

BRELA and BPRA issue Class “A” licenses for businesses operating nationally or internationally.

Steps:

1. CREATE an account (ORS)

2. Fill in the application form

Provide details relevant to the license type, such as owner info, location, products, and planned investment.

3. Upload attachments

Submit required documents.

4. Payment

A control number is generated for payment after uploading.

5. Submit application

Submit after payment.

6. Decision

Feedback given if corrections needed. If approved, a business license is issued.

TAX IDENTIFICATION NUMBER (TIN) CERTIFICATE

TIN services are provided online by TRA (mainland) and ZRA (Zanzibar). A director must have an individual TIN before applying for a business TIN.

Steps:

1. Obtain an individual TIN for the director

2. Fill in the Business TIN Registration Form

3. Estimate income, tax payable, and installments

4. Upload required documents:

Certified memorandum and articles of association
Introduction letter from LGAs
Certificate of incorporation
Certified lease agreement or title deed
Power of Attorney

5. Submit to the authority for review

PENSION FUND REGISTRATION

Eligibility varies by fund and may depend on employee count or business sector.

Steps:

1. Confirm eligibility requirements

2. Gather required documents

3. Contact the relevant pension fund authority

4. Complete and submit application forms with supporting documents

5. Await approval and receive registration confirmation

6. Begin making regular contributions on behalf of employees

Required documents:

Certificate of incorporation or registration
TIN certificate
Business license
Certificate of business name

SANCTIONS FOR NON-COMPLIANCE

Sanctions apply to both registered and unregistered businesses, depending on the violation.

For unregistered businesses:

Prohibition: Businesses without a valid license cannot legally operate in Tanzania.

Fines/Penalties: Non-compliance with registration procedures results in fines.

Imprisonment: Some regulations prescribe imprisonment for serious violations.

For registered businesses:

Suspension/Revocation of License may occur if a business:

Ceases using premises for their registered purpose
Has an owner/manager convicted of an offence
Owner becomes bankrupt or company goes into liquidation
Fails to comply with registration conditions
Submitted false information
Violates applicable laws

Fines/Penalties may apply for:

Changing location without notifying authorities
Failing to file tax returns
Operating outside the registered location
Failing to surrender a revoked/cancelled certificate

Confiscation of Property may occur for:

Tax evasion
Trading counterfeit or expired products
Trading in illegal or unregistered products

Chapter Five: Business Registration in Tanzania – Business Studies Form Five